Nigeria Orders Entities to Identify Crypto Traders on Bybit, KuCoin, OKX, and Binance

16 views 1:06 pm 0 Comments May 14, 2024

  • The Central Bank of Nigeria has instructed financial institutions to identify individuals or entities engaging in transactions with or operating four unlicensed cryptocurrency exchanges – Binance, Bybit, KuCoin, and OKX.

  • This directive follows the ongoing conflict between Binance and the Nigerian government.

The Central Bank of Nigeria issued a directive on Tuesday, instructing financial institutions to identify individuals or entities engaging in transactions with or operating Bybit, KuCoin, OKX, and Binance, as stated in a letter obtained by CoinDesk.

The letter, directed to Deposit Money Banks (DMBs), Non-Bank Financial Institutions (NBFIs), Other Financial Institutions (OFIs), and the general public, also warned and reminded these institutions that engaging in cryptocurrency transactions or facilitating payments for cryptocurrency exchanges is prohibited.

The recent directive is a result of the ongoing dispute between Binance and the Nigerian government, which has garnered international attention. The Nigerian government accused Binance of contributing to currency speculation that negatively impacted its currency, the naira. As a response, the government invited two Binance executives to the country, subsequently arresting them, with one managing to escape.

The Central Bank of Nigeria has not yet responded to CoinDesk’s request for comments.

Additionally, the regulatory body has mandated financial institutions to place such identified accounts on Post No Debit (PND) instruction for a period of six months. Failure to comply with this directive will lead to severe regulatory penalties.

Furthermore, the letter stated that individuals or “suspected agents” involved in clandestine activities across all cryptocurrency platforms, engaging in illegal buying and selling of USDT, will face arrest. The Central Bank of Nigeria considers it its responsibility to investigate economic challenges within the country.

Interestingly, the recent circular did not mention any local cryptocurrency exchanges, possibly due to several Nigerian crypto firms, like Flincap, actively pursuing the necessary licenses, noted Nathaniel Luz, CEO of Flincap, a platform specializing in OTC crypto exchanges.

Read More: Jailed Binance Exec’s Bail Hearing in Nigeria Postponed Until May 17

Edited by Parikshit Mishra.